Tata Motors Problems in Market MBA Literature Survey

Tata Motors is facing many problems in the market place and researcher is making different recommendations to Tata Motors and Indian Auto Industry.

Many automobile companies stated that globalization process has shown major impact on auto industry which allowed them to face many problems. In order to overcome globalization impact auto companies should try to improve their company standards in the global markets through which they can even manage competitive levels in the global markets.

Many participants stated that the buying behavior of the customers change continuously which is the major reason for the failures of automobile companies. In order to overcome this problem, companies should try to maintain customer relationship management process through which they can build a relation with the customers and can easily identify their wants and needs.

In the research survey process, many participants stated that Tata Nano has not changed the history of Indian Auto industry but it gave some competition in the first year to the auto companies with its huge expectations. Tata Motors should take this particular point into consideration that auto companies are not thinking Nano as core competence of Tata Motors. In order to prove its efficiency and improve its competitive levels Tata should make some new innovations to Nano Car which gives a huge competition to the companies and get competitive advantages to Tata Motors.

Tata Motors stated that its major competitors are Honda, Maruthi and Toyota but not only these three companies Tata should try to consider all other auto companies because every company has its own strategies core competencies and each and every company which exists in the market can be considered as the competitor for the existing companies. 

The participants from Tata Motors gave a neutral answer that Tata Nano changed the history and Tata Nano does not change the history of Indian auto industry. Tata it self is not so clear that Nano is their competitive advantage. In order to make their Nano more successful Tata should try to improve the features of Nano and turn this car into the core competence of Tata Motors. Participants from Tata even answered that Indica and Indigo along with Nano are their most successful products. But Tata is still not clear that Nano is their only successful product, Tata is trying to manage all their company products in a balanced way. But Tata should highlight Nano as their competitive advantage because no other company in the world is offering a car for only one lakh rupees which are equal to that of a two wheeler price. Tata should try to promote Nano with more advertisements in order to create awareness among the customers not only in India but even in the global markets.

Participants from Tata Motors answered that price is the major competitive advantage of Nano Car, but Tata should remember that price is not only the major constraint but many people even prefer price along with quality and features. Tata should improve the quality of their Nano car and should develop it with required features.

While introducing Nano car there are huge expectations in the market that Nano car will change the history of Indian Auto industry and it will even satisfy the low income customer at all ends. But after using Nano many customers were not satisfied with the features and quality offered in the Nano Car. The customer feedback on Nano was not so impressive especially there were many technical problems, no proper seating facility, less mileage and low quality products within the car are the major complaints on Nano. For this reason, Tata should totally consider customer feedbacks and should innovate Nano car with additional features. By increasing Nano features Tata can even increase the price on Nano upto 1.5 lakh or 2 lakhs because no other company in the world is offering cars at the range between 1.5 to 2laksh and for this reason Nano can take this as an advantage and can improve the quality and all. Even after increasing the prices Nano will be the cheapest car in the world because other car is available in the market with a price range of 1.5 to 2 lakhs.

Many existing customers of Nano answered that they prefer Nano Car because of its low price but still they are stating that quality is also important and they are suggesting that Tata should improve the features and services of Nano car in order to totally satisfy the customers.

Many customers using Nano even stated that they have faced many technical problems with Nano car and Tata should try to improve the services and should offer the new Nano cars which do not create technical problems and should even offer free services to the existing customers who are using Nano car and facing problems with it.

Many participants even answered that the advertisements given by Tata Company and the marketing staff who were appointed to market Nano cars have initiated them to buy Nano Car. For this reason, Tata should identify that advertisements and marketing staff are more helpful to Tata in selling their Nano cars and for this reason they should use new strategies in advertising and marketing process in order to attract the customers towards its company. 

 The new customers of Tata who are willing to buy Nano car answered that the major reason behind they interest towards Nano is the low price when compared with the other cars. The customers are stating that they were just in a dilemma whether to buy Nano or not because of the existing customer feedback and Nano reviews. In order to satisfy these customers Tata should innovate Nano car and should promote the car in such a way which directly attracts the customers towards Nano and improves the sales of Nano.